Stocks fall in early trading, led by declines in real estate

NEW YORK (AP) — Stocks are falling in early trading Monday, led by declines in utilities and real estate companies. Seven of the 11 sectors of the Standard and Poor's 500 index are lower. Janus Capital surges after announcing it is merging with another investment company. KEEPING SCORE: The Dow...

 
              FILE - In this Friday, Nov. 13, 2015, file photo, the American flag flies above the Wall Street entrance to the New York Stock Exchange. European stocks have started the week strongly, on Monday, Oct. 3, 2016, with British shares rising thanks to a sharp drop in the pound, which helps the country's exporters and multinationals. The closure of German markets for a public holiday also allowed traders to take a breather from recent worries over the health of Deutsche Bank and the wider European banking system. (AP Photo/Richard Drew, File)

NEW YORK (AP) — Stocks are falling in early trading Monday, led by declines in utilities and real estate companies. Seven of the 11 sectors of the Standard and Poor's 500 index are lower. Janus Capital surges after announcing it is merging with another investment company.

KEEPING SCORE: The Dow Jones industrial average fell 65 points, or 0.4 percent, to 18,243 at 11:03 a.m. Eastern time. The S&P 500 lost 7 points, or 0.3 percent, to 2,161. The Nasdaq composite declined 10 points, or 0.2 percent, to 5,302.

DRUGMAKER DOWNER: Merrimack Pharmaceuticals, which develops cancer drugs, slumped 30 cents, or 4.4 percent, to $6.05 after announcing that it would cut almost a quarter of its workforce and look for a new CEO.

JANUS JUMPS: Janus Capital surged $1.72, or 12 percent, to $15.73 after announcing it would merge with another investment company, Henderson Group.

RETAIL ROCKET: Outdoor goods retailer Cabela's shot up $7.99, or 14.5 percent, to $62.92 on news it is being bought by Bass Pro Shops.

THE QUOTE: Ernie Cecilia, chief investment officer at Bryn Mawr Trust, say of all the deals lately make sense because companies have few other ways of lifting results in a slow growth, low inflation world. "If you can't raise prices, how else are you going to grow?"

EUROPE RISING: Britain's FTSE 100 rose 1.3 percent thanks to a sharp drop in the pound, which helps the country's exporters and multinationals. France's CAC 40 slipped less than 0.1 percent. German markets are closed for a holiday.

POUND DROP: The pound fell 1.1 percent to $1.2833 following comments from Prime Minister Theresa May that the formal process by which Britain leaves the European Union will start by March next year. She signaled that she would prioritize controls on immigration over access to the European single market.

JOBS IN FOCUS: A number of economic reports are due out this week, culminating Friday with the government's monthly jobs survey. Strong jobs numbers might encourage Federal Reserve to raise interest rates again this year.

ASIA'S DAY: Japan's benchmark Nikkei 225 gained 0.9 percent and Hong Kong's Hang Seng rose 1.2 percent. Australia's S&P/ASX 200 rose 0.8. South Korean markets were closed.

ENERGY: Benchmark U.S. crude oil fell 9 cents to $48.15 a barrel while Brent crude, the international standard, rose 5 cents to $50.25 a barrel in London.

BONDS AND CURRENCIES: Bond prices fell. The yield on the 10-year Treasury note rose to 1.62 percent from 1.60 percent. The euro fell to $1.1217 from $1.1237 and the dollar rose to 101.62 yen from 101.41 yen.

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